GBP/USD: Rally stalled – OCBC

Pound Sterling (GBP) had a choppy session overnight. Pair was last at 1.3533 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is flat

"GBP fell at first due to softer than expected prints for April GDP, industrial production, then later erased losses to trade above 1.36-handle at one point after USD fell broadly (as US PPI underwhelmed)."

"But the move above 1.36 was short-lived as geopolitical escalation between Israel and Iran saw GBP ease lower. Daily momentum is flat while RSI fell. Pullback lower in the near term not ruled out. Support at 1.35 (21 DMA), 1.3440 levels. Resistance at 1.3630 (overnight high)."